Latin Stocks Fall, Led by Petrobras, on Plunge in Commodities
By Telma Marotto
Sept. 11 (Bloomberg) -- Latin American shares fell for a fifth day, led by Brazilian oil company Petroleo Brasileiro SA, on concern that the end of a five-year global bull market in commodities will curtail exports and profits.
The Morgan Stanley Capital International Index of Latin American shares fell 2.3 percent to 2365.21. Shares of Petrobras, Brazilian iron-ore producer Cia. Vale do Rio Doce and Argentine steelmaker Tenaris SA accounted for almost half of the drop.
Declining prices for oil, gold and other raw material since May signal that a boom in commodities demand has ``run its course,'' Stephen Roach, the New York-based chief global economist at Morgan Stanley, said in an interview last week. The Reuters/Jefferies CRB Futures Price Index fell for a fourth day, while a measure of six metals traded on the London Metal Exchange fell 4.6 percent, the most since June 13.
``What we are seeing is a change in investors' perceptions on global growth and how this can effect corporate profits,'' said Augusto Lange, who manages 750 million reais ($344.3 million) of assets for a high-yield fund at Neo Gestao de Recursos in Sao Paulo.
Brazil's Bovespa index fell 785.99, or 2.2 percent, to 35,772.49, while Mexico's Bolsa fell 182.93, or 0.9 percent, to 20,612.89.
Grupo Mexico SA, the world's seventh-biggest biggest copper producer, and Industrias Penoles SA, Mexico's largest silver miner, dropped the most among the Bolsa's 35 members.
Copper for December delivery had its biggest decline in almost two months, while silver prices dropped the most since June 13 amid signs of weakening growth.
Economists this month reduced their forecast of 2007 U.S. economic growth to 2.7 percent, from 3.1 percent in May, a survey by the U.S. National Association of Economists showed today. Japan said orders for new machinery fell the most in 20 years in July.
Economic reports this week may show retail sales in the U.S. fell and growth in industrial output slowed last month, according to Bloomberg surveys of economists.
In other Latin American markets, the main indexes in Argentina, Chile, Venezuela, Colombia and Peru also fell.
The following are the most-active stocks in Latin American markets today. In Brazil, the preferred share is usually a company's most-traded class of stock.
Argentina
Tenaris (TS AR), the world's biggest maker of seamless tube to transport oil and gas, fell 2.45 pesos, or 4.4 percent, to 53 pesos.
Brazil
Petrobras (PETR4 BS) fell 1.64 reais, or 4 percent, to 39.56 reais. Oil declined for a sixth day, its longest losing streak in almost three years, on signs that fuel demand growth will slow and that stockpiles in the U.S., consumer of a quarter of the world's oil, are adequate.
Tim Participacoes SA (TCSL4 BS), the Brazilian unit of Telecom Italia Mobile SpA (TIT IM), rose 33 centavos, or 5.4 percent, to 6.43 reais. The voting shares (TCSL3 BS) soared 50 centavos, or 6.1 percent, to 8.75 reais. Telecom Italia may sell the mobile units in Italy and Brazil for as much as 47 billion euros ($59.7 billion), la Repubblica daily said yesterday, without citing anyone.
Cia. Vale do Rio Doce (VALE5 BS), the world's largest iron-ore producer, fell 1.73 reais, or 4.2 percent, to 39.15 reais. Vale, BHP Billiton Ltd. (BHP AU) and Xstrata Plc (XTA LN) may bid for Skye Resources Inc. (SKR CN), a Vancouver-based company that's developing a nickel deposit, the Globe and Mail reported, citing people it didn't identify. Vale's interest in the Canadian miner is the ``most advanced,'' and the Brazilian iron-ore producer may be preparing a bid of about C$20 a share, which would value Skye at C$589 million ($526 million), the newspaper said today.
Mexico
America Telecom SA (AMTELA1 MM), the holding company for America Movil SA (AMXL MM), dropped 1.29 pesos, or 1.8 percent, to 70.69 pesos. The stock has fallen 4.7 percent so far this month, the fourth-worst performance among the Bolsa's 35 members. America Movil, Latin America's biggest cell phone company and the stock with the biggest weighting on the Bolsa index, rose 6 centavos, or 0.3 percent, to 20.17 pesos.
Grupo Mexico SA (GMEXICOB MM) fell 1.2 pesos, or 3.4 percent, to 33.92 pesos. Copper prices for December delivery fell 4.2 percent on the Comex division of the New York Mercantile Exchange, the biggest drop since July 20.
Industrias Penoles SA (PE&OLES* MM) dropped 6.37 pesos, or 7.1 percent, to 84.02 pesos, its biggest drop since June 12. Silver prices for December delivery fell 8.6 percent on the Comex division of the New York Mercantile Exchange, the largest decline since dropping 13 percent on June 13.
To contact the reporter on this story: Telma Marotto in Sao Paulo at at Tmarotto1@bloomberg.net . |
